After The Sherwin-Williams Company's (NYSE:SHW) recent earnings announcement in September 2018, the consensus outlook from analysts appear bearish, as a -10% fall in profits is expected in the upcoming year
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PPG Stock Is Up on Its Q4 Earnings BeatPPG Industries announces its fourth-quarter results PPG Industries (PPG) announced its fourth-quarter earnings results today before the market opened. It reported adjusted EPS of $1.15, a fall of ~3.4%

# Sherwin-Williams Co
### NYSE:SHW
View full report here!
## Summary
* Perception of the company's creditworthiness is negative
* Bearish sentiment is low
* Economic output in this company's sector is expanding
## Bearish sentiment
Short interest | Positive
Short interest is low for SHW with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices.
## Money flow
ETF/Index ownership | Neutral
ETF activity is neutral. The net inflows of $11.42 billion over the last one-month into ETFs that hold SHW are not among the highest of the last year and have been slowing.
## Economic sentiment
PMI by IHS Markit | Positive
According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating.
## Credit worthiness
Credit default swap | Negative
The current level displays a negative indicator. SHW credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.
Please send all inquiries related to the report to score@ihsmarkit.com.
Charts and report PDFs will only be available for 30 days after publishing.
This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

PPG Industries: What to Expect from Its Q4 EarningsUpcoming fourth-quarter earningsIn a press release on January 8, PPG Industries (PPG) said it would announce its fourth-quarter earnings on January 17 before the market opens. The earnings will be

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tumbled Tuesday after the company reported that its fourth-quarter and full-year revenue and earnings will fall short of previous forecasts. The Cleveland-based company expects consolidated fourth-quarter revenue to increase 2% year over year, short of previous guidance that called for a mid-single digit percentage increase. Net income for the full year is now expected to be about $11.15 a share, down from October guidance of earnings between $13.85 and $14 a share, because of lower-than-expected fourth-quarter sales.

Sherwin-Williams (NYSE:SHW) stock is taking a hit on Tuesday as the company warned of an update surrounding its profit for its fiscal year, which is now slated to be below both the paint maker's guidance and Wall Street's consensus estimate.
The Cleveland, Ohio-based company saw its stock decline by as much as 7.5% in premarket trading today as its fiscal 2018 earnings are going to be short of what everyone was calling for. CEO John Morikis said that these underwhelming results are associated with a performance that "was disappointing across the board."
"Consolidated revenue growth for the fourth quarter fell well short of our previous expectation, due in large part to weak sales growth by our North American stores in October and November," CEO John Morikis added in his statement. The Sherwin-Williams boss added that the company's store sales did rebound slightly in December, but this improvement was not enough to carry the rest of it shortcomings during the period.
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The paint company added that it now sees its fiscal 2019 adjusted earnings to be about $18.53 per share, which is below the company's previous guidance of earnings in the range of $19.05 to $19.20 per share. Analysts were calling for Sherwin-Williams to rake in a profit of $19.11 per share for the fiscal year.
The company added that it sees its fourth-quarter revenue to gain 2% year-over-year, below its previous guidance of a mid-single digit percentage surge.
SHW stock is declining about 4.1% on Tuesday following the update.
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The post Sherwin-Williams (SHW) Stock Tumbles on Profit Warning appeared first on InvestorPlace.

Sales growth for the fourth quarter is expected to be only 2 percent, well below the Wall Street's estimate of about 5 percent. Shares of Sherwin-Williams SHW tanked on Tuesday after the company warned that its earnings in 2018 came well short of guidance, citing weak sales in North American stores. The paint maker on Tuesday reported its preliminary results for the fourth quarter and full year 2018.

Sherwin-Williams Co. shares slid 7.5% in premarket trade Tuesday, after the paints company warned that full-year earnings have fallen short of its guidance and consensus numbers and its CEO said its performance "was disappointing across the board". "Consolidated revenue growth for the fourth quarter fell well short of our previous expectation, due in large part to weak sales growth by our North American stores in October and November," CEO John Morikis said in a statement. "Store sales rebounded somewhat in December, but not enough to bring in the quarter." The company is now expecting full-year adjusted per-share earnings of $18.53, below guidance of $19.05 to $19.20 and the FactSet consensus of $19.11. Sales in the fourth quarter are expected to rise 2%, compared with prior guidance for a mid-single digit percentage increase. Shares have fallen 8.1% in the last 12 months, while the S&P 500 has fallen 7.3%.

Specialty Chemicals: Updates for the Week Ending January 11
(Continued from Prior Part)
## Axalta’s 2019 automotive color of the year
On January 10, Axalta (AXTA) choose ‘Sahara,’ a golden bronze tone, as the 2019 automotive color of the year. Sahara radiates warmth and brings richness and strength to all vehicles irrespective of sizes. Axalta showcased Sahara in manufacturing facilities as well as the aftermarket for the first time in the five-year history of the automotive color of the year. Sahara could be the main color for two-tones. Axalta has been announcing the automotive color of the year since 2015. Axalta selected Radiant Red in 2015, Brilliant Blue in 2016, Gallant Gray in 2017, and Starlite in 2018.
Axalta will display Sahara at the 2019 North American International auto show in Detroit. Dan Benton, the marketing manager ofAxalta’s refinish color department, said, “Axalta’s Color of the Year is another example of how Axalta transfers OEM technology to the aftermarket and repair businesses. We get calls every year from some of the industry’s best custom builders looking to use color to differentiate their products. We have Sahara formulated and ready-to-go in our industry-leading refinish brands including Cromax, Standox, and Spies Hecker.”
## Axalta’s stock price update
Axalta continued its upward trend in 2019. The stock gained 4.8% and closed at $24.96 for the week ending January 11. The gain in the stock price helped narrow the company’s 100-day moving average gap. Axalta traded 4.8% below its 100-day moving average price of $26.23. So far in 2019, Axalta has gained 6.6%%. RPM International (RPM) and PPG Industries have declined 7.0% and 0.4%, respectively, while Sherwin-Williams (SHW) has gained 0.6%.
Axalta’s 14-day RSI (relative strength index) is at 61, which indicates that the stock isn’t overbought or oversold. An RSI of 30 and below suggests that the stock is oversold, while an RSI of 70 and above suggests that the stock is overbought.
Investors can hold Axalta indirectly by investing in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 0.9% of its holdings in Axalta as of January 11.
Browse this series on Market Realist:
* Part 1 - Hanwha Total Petrochemical: W.R. Grace’s New Order
* Part 2 - IFF Collaborates with Aryballe on Digital Nose
* Part 3 - PPG Industries Launched a New Polyurethane Primer

Specialty Chemicals: Updates for the Week Ending January 11
(Continued from Prior Part)
## PPG Industries’ new launch
On January 9, PPG Industries (PPG) announced the introduction of SPECTRACRON 385 POLY-IOTHANE—a solid primer. The new primer has outstanding durability in severe and corrosive environments. The primer has good chemical resistance, excellent flexibility, and direct and indirect impact resistance. The primer has maximum volatile organic compound emissions of 3.5 pounds per gallon. The new primer is environmentally friendly.
The new primer is targeted at industries like industrial equipment, building materials, telecommunications, and other heavy-duty equipment applications. PPG Industries’ new launches are expected to drive its organic growth. We’ll have to wait and see how the new launches will contribute to PPG Industries’ revenue growth.
## Stock price updates
PPG Industries had a positive week with gains of 2.0% and closed at $101.86 for the week ending January 11. Despite the gains in the stock price, PPG Industries traded 3.6% below the 100-day moving average price of $105.70. So far in 2019, PPG Industries has declined 0.4%. RPM International (RPM) has declined 7.0%, while Sherwin-Wiliams (SHW) and Axalta (AXTA) have gained 0.6% and 6.6%, respectively.
PPG Industries’ 14-day relative strength index is at 51, which indicates that the stock isn’t overbought or oversold.
Investors could hold PPG Industries indirectly by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM). RTM gained 2.4% during the week. RTM invests 4.0% of its portfolio in PPG Industries.
Continue to Next Part
Browse this series on Market Realist:
* Part 1 - Hanwha Total Petrochemical: W.R. Grace’s New Order
* Part 2 - IFF Collaborates with Aryballe on Digital Nose
* Part 4 - Axalta: ‘Sahara’ Is the 2019 Automotive Color of the Year

As of January 10, RPM International’s (RPM) dividend yield stood at 2.54%—its second-highest quarterly dividend yield since the first quarter of 2015. PPG Industries (PPG) and Sherwin-Williams (SHW) have a dividend yield of 1.89% and 0.86%, respectively, while Axalta (AXTA) hasn’t paid a dividend.

Analyzing RPM International's First-Quarter Dividends
## RPM International’s first-quarter dividend
In a press release on January 2, RPM International (RPM) announced the rates and key dates for its first-quarter dividend.
To be eligible for RPM International’s first-quarter dividend, investors must hold RPM International shares in the company’s records as of the market close on January 16. The dividend is expected to be paid on January 31.
For the first quarter, RPM International declared a dividend of $0.35 per share—no change from the previous quarter. However, the dividend represents an increase of ~9.4% compared to the same quarter the previous year. PPG Industries (PPG) and Sherwin-Williams (SHW) paid their fourth-quarter dividend of $0.48 and $0.86 per share, respectively, while Axalta (AXTA) hasn’t paid any dividends.
RPM International had ~131.7 million outstanding shares after its earnings for the second quarter of fiscal 2019. Assuming that no share buybacks take place before the record date, RPM International will be paying $46.1 million in the form of dividends to its shareholders.
## Dividend growth trend
RPM International has increased its dividend for 45 consecutive years. Since 2015, RPM International’s dividend has grown at a compound annual growth rate of ~8.7%. We need to discuss the cash flows to see if RPM International can sustain its dividend growth.
Next, we’ll discuss RPM International’s free cash flow growth and its ability to support its dividend growth. Investors can get indirect exposure to RPM International through the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ had 3.1% of its holdings invested in RPM International as of January 10.
Continue to Next Part
Browse this series on Market Realist:
* Part 2 - RPM International’s Free Cash Flow Trend
* Part 3 - RPM’s Dividend Yield Is Showing an Upward Trend Again
* Part 4 - RPM International: Analysts’ Recommendations

# Sherwin-Williams Co
### NYSE:SHW
View full report here!
## Summary
* Perception of the company's creditworthiness is negative
* ETFs holding this stock are seeing positive inflows
* Bearish sentiment is low
* Economic output in this company's sector is expanding
## Bearish sentiment
Short interest | Positive
Short interest is low for SHW with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices.
## Money flow
ETF/Index ownership | Positive
ETF activity is positive. Over the last month, growth of ETFs holding SHW is favorable, with net inflows of $22.47 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing.
## Economic sentiment
PMI by IHS Markit | Positive
According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating.
## Credit worthiness
Credit default swap | Negative
The current level displays a negative indicator. SHW credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.
Please send all inquiries related to the report to score@ihsmarkit.com.
Charts and report PDFs will only be available for 30 days after publishing.
This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

Analyzing Chemical Companies in the Week Ending January 4
(Continued from Prior Part)
## RPM International’s earnings
On January 4, RPM International (RPM) announced its earnings for the second quarter of fiscal 2019. The company reported an adjusted EPS of $0.52—a decline of 8.77% over the adjusted EPS of $0.57 the previous year. RPM International’s adjusted EPS fell short of analysts’ estimates of $0.68.
RPM International reported revenues of $1.36 billion compared to $1.32 billion in the second quarter of 2018—3.6% growth year-over-year. However, RPM International missed analysts’ estimates of $1.38 billion. The revenue growth was mainly driven by organic growth and acquisition growth, while unfavorable foreign currency had a negative impact. Both of RPM International’s reporting segments witnessed revenue growth.
Frank C. Sullivan, RPM’s chairman and CEO said, “We achieved solid top-line improvement with sales growth of 3.6%, despite the unfavorable foreign currency translation effect of 2.0%. Like many manufacturers, our bottom line was impacted by a continued rise in costs for raw materials, freight, labor, and energy, as well as adverse foreign exchange translation.”
RPM International expects to report an EPS of $0.10–$0.12 for the third quarter of fiscal 2019.
## RPM International’s stock price
The markets appeared to be disappointed with RPM International’s earnings. The stock price declined ~9.9% for the week and closed at 52.26. Sherwin-Williams (SHW) and Axalta (AXTA) gained 0.2% and 4.1%, respectively, for the week, while PPG Industries (PPG) declined 1.3%. The decline in RPM International’s stock price caused the stock to trade 16.7% below its 100-day moving average price of $62.71
RPM International’s 14-day relative strength index of 26 indicates that the stock has temporarily moved into the oversold position.
Investors could hold RPM International indirectly by investing in the First Trust Dorsey Wright Momentum & Dividend ETF (FXZ). FXZ has invested 2.9% of its holdings in RPM International as of January 4.
Browse this series on Market Realist:
* Part 1 - DowDuPont’s Corteva Sold Its Herbicide Product Line
* Part 2 - Celanese Completed the Next Polymers Acquisition
* Part 3 - Westlake Chemical Completed the Nakan Acquisition